Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Components of Income Tax Benefit

Income tax benefit consists of the following components (in thousands):

	Successor			Predecessor
	For the Period From February 10, 2018 Through December 31, 2018			For the Period From January 1, 2018 Through February 9, 2018			For the Year Ended   December 31, 2017
Current
Federal	$	(3,430	)	$	(112	)	$	2,757
State and local	(1,647		)	70			(2,315		)
Current income tax expense (benefit)	(5,077		)	(42		)	442
Deferred
Federal	3,193			83			(4,215		)
State and local	(767		)	(59		)	416
Deferred income tax expense (benefit)	2,426			24			(3,799		)
Total income tax benefit	$	(2,651	)	$	(18	)	$	(3,357	)

Schedule of Income Tax Benefit at Company's Effective Tax Rate Reconciliation

Income tax benefit at the Company’s effective tax rate differed from the statutory tax rate as follows (in thousands):

	Successor			Predecessor
	For the Period From February 10, 2018 Through December 31, 2018			For the Period From January 1, 2018 Through February 9, 2018			For the Year Ended   December 31, 2017
Income (loss) before income taxes	$	(207,745	)	$	520,989		$	(430,256	)
Tax provision at statutory tax rate (21% and 35% in 2018 and 2017, respectively)	(43,627		)	109,408			(150,590		)
Effect of:
Valuation allowance exclusive of Tax Act	43,565			(160,644		)	162,496
Section 108 attribute reduction	—			92,343			—
Cancellation of debt income exclusion	(94		)	(91,859		)	—
State and local income tax	(4,904		)	25,127			(26,396		)
Section 382 interest adjustment	—			15,750			—
Share-based compensation	—			8,044			—
Non-deductible restructuring costs	149			1,978			13,475
Federal rate change related to Tax Act	—			—			173,405
Valuation allowance related to Tax Act	—			—			(180,033		)
Other	2,260			(165		)	4,286
Total income tax benefit	$	(2,651	)	$	(18	)	$	(3,357	)

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the components of deferred tax assets and liabilities (in thousands):

	Successor			Predecessor
	December 31, 2018			December 31, 2017
Deferred tax assets
Goodwill	$	65,426		$	66,699
Reverse loans	60,776			48,814
Servicer and protective advances	40,497			37,793
Curtailment liability	25,228			33,724
Net operating losses	16,644			113,315
Disallowed interest expense	10,997			—
Intangible assets	8,677			20,978
Accrued expenses	6,310			8,396
Net investment in residential loans	4,772			—
Accrued legal contingencies and settlements	3,388			6,727
Other	31,397			50,638
Total deferred tax assets	274,112			387,084
Valuation allowance	(221,913		)	(328,661		)
Total deferred tax assets, net of valuation allowance	52,199			58,423
Deferred tax liabilities
Servicing rights	(53,617		)	(52,587		)
Net investment in residential loans	—			(3,972		)
Other	(454		)	(1,312		)
Total deferred tax liabilities	(54,071		)	(57,871		)
Deferred tax assets (liabilities), net	$	(1,872	)	$	552

Schedule of Activity in Valuation Allowance on Deferred Tax Assets

The following table summarizes the activity in the valuation allowance on deferred tax assets (in thousands):

	Successor		Predecessor
	For the Period From February 10, 2018 Through December 31, 2018		For the Period From January 1, 2018 Through February 9, 2018			For the Year Ended   December 31, 2017
Balance at beginning of period	$	178,303	$	328,661		$	346,199
Fresh start accounting adjustments	—		(148,091		)	—
ASC 610 accounting adjustments	45		10,286			—
Charges to income tax expense	43,565		—			—
Deductions	—		(12,553		)	(17,538		)
Balance at end of period	$	221,913	$	178,303		$	328,661

Reconciliation of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total liability for unrecognized tax benefits is as follows (in thousands):

	Successor			Predecessor
	For the Period From February 10, 2018 Through December 31, 2018			For the Period From January 1, 2018 Through February 9, 2018		For the Year Ended   December 31, 2017
Balance at the beginning of the period	$	3,090		$	3,088	$	5,414
Increases (reductions) related to prior year tax positions	(1,287		)	2		(2,766		)
Increases related to current year tax positions	—			—		440
Balance at the end of the period	$	1,803		$	3,090	$	3,088